Tata Technologies' initial public offering (IPO) will open for subscription on Wednesday, November 22, with the Tata Group firm selling its shares at a defined price band of Rs 475-500 per share, with a lot size of 30 equity shares and multiples thereof. The issue's bidding period will end on Friday, November 24.
Tata Technologies, founded in 1994, is a global engineering services company owned by the Tata Group that provides product development and digital solutions. Turnkey solutions are provided to worldwide original equipment manufacturers (OEMs) and their tier-I suppliers.
Tata Technology's initial public offering (IPO) comprises of an offer-for-sale (OFS) of up to 6,08,50,278 equity shares having a face value of Rs 2 each, for a total of Rs 3,042.51 crore. The OFS will be attended by the company's promoter, Tata Motors Ltd, as well as other shareholders such as Alpha TC Holdings and Tata Capital Growth Fund I. The corporation will receive no proceeds from the offering.
Tata Technologies has set aside 20,28,342 shares for qualified workers. A total of 60,85,027 shares, or 10% of the offer, have been reserved for Tata Motors stockholders. Qualified institutional bidders will receive 50% of the net offer, while retail investors and non-institutional investors will receive 35% and 15%, respectively.
Tata Technologies aids customers in the development of products that are safer, cleaner, and increase end-user quality of life. With deep domain expertise in the automotive industry, it has gained high expertise to serve clients in adjacent industries, such as aerospace, transportation and heavy construction machinery.
For the six months ending September 30, 2023, Tata Technologies reported a net profit of Rs 351.90 crore on a total revenue of Rs 2,587.42 crore. For the fiscal year ended March 31, 2023, the company earned a net profit of Rs 624.04 crore on revenue of Rs 4,501.93 crore.
The book running lead managers for the Tata Technologies IPO are JM Financial, Citigroup Global Markets India, and BofA Securities India, with Link Intime India serving as the registrar. The company's shares will be listed on both the BSE and the NSE.
